Reporting Pursuant to Section 38da of the Income Tax Act on Tax Exempt or Tax-Free Income
This reporting obligation to your competent tax authority is not a new one. It has been in force since 2019. For reminder - your tax authority requires information on all payments you have made abroad and these payments were either exempt from withholding tax in the Czech Republic or are not taxable in the Czech Republic at all. Typically, this can be, for example, exempted payments of dividends, royalties, interest, settlement shares or shares in the liquidation balance.
We would like to remind you that the notification rules were simplified last year. Services provided from the territory of the Czech Republic to abroad are not subject to notification. At the same time, interest paid is not reported if its value for the given month does not exceed CZK 300,000.
The report shall be submitted once a year, by January 31 of the following year. You are therefore obliged (provided, of course, that the obligation has arisen) to submit a report on the prescribed form by January 31, 2025, for the entire year 2024.